Full Breakdown
Taiwan’s President Calls for Record Defence Spending to Deter War on National Day
By Drooid · · How we work
Core Event: National Day Address Emphasizes Defence Boost
On October 10, President Lai Ching-te delivered his annual National Day speech in front of the Presidential Office in Taipei. Speaking to a crowd that included foreign diplomats, Lai declared that Taiwan will increase its defence investment to “deter war” rather than provoke Beijing. He stressed that the island “cherishes peace” and will not relinquish its freedom, while warning that China’s “military and grey-zone activities” aim to alter the status quo across the Taiwan Strait.
Background & Context
The National Day celebration marks the 115th anniversary of the 1911 uprising that ended China’s Qing dynasty and led to the founding of the Republic of China. The cross-strait dispute traces back to the Chinese civil war, when nationalist forces under Chiang Kai-shek retreated to Taiwan in 1949 after defeat by Mao Zedong’s communists. Since then, the People’s Republic of China has maintained that Taiwan is part of its territory and has never renounced the use of force to achieve reunification.
Data & Statistics
- Defence budget: NT$1.1 trillion (US$34.5 billion) earmarked for 2027, representing more than 3 % of Taiwan’s gross domestic product.
- Recent Chinese activity: In a 24-hour period ending early Saturday morning, Taiwan’s Ministry of National Defence reported 21 Chinese aircraft and seven navy ships operating around the island, with 13 aircraft crossing the median line into Taiwan’s air-defence identification zone.
- U.S. arms package: Taiwan is awaiting President Donald Trump’s signature on a US$14 billion weapons package that includes the Patriot air-defence system.
Official Statements & Responses
He welcomed talks between the United States and China but warned that tolerance must not become a pretext for aggression.
U.S. officials in Washington and Taipei have repeatedly affirmed that U.S. policy toward Taiwan has not changed under President Trump, despite his May suggestion that arms sales could be used as a bargaining chip with Beijing.
Foreign guests at the ceremony included King Mswati III of Eswatini—Taiwan’s sole diplomatic ally in Africa—Indiana Lieutenant Governor Micah Beckwith, and a Japanese parliamentary delegation, all of whom congratulated Taiwan on its defence initiative.
Why It Matters
The record-size defence allocation signals Taiwan’s intent to strengthen its self-defence capabilities amid escalating Chinese military pressure. By linking the budget increase to deterrence rather than provocation, Lai aims to reassure both domestic audiences and international partners that Taiwan remains committed to peace while preparing for potential conflict. The pending US$14 billion weapons deal underscores the island’s reliance on American security guarantees, a factor that shapes regional stability in the Asia-Pacific.
What’s Next
Taiwan awaits formal approval from President Trump on the US$14 billion weapons package. The outcome will determine the timeline for delivery of systems such as the Patriot air-defence network, which Taiwan views as essential to countering Chinese air and missile threats.